NZ shares gain as investors hunt bargains
Tower, Ryman Healthcare and Fisher & Paykel Healthcare gained as bargain hunters sought oversold stocks.
The S&P/NZX 50 Index rose 24.32 points, or 0.4 percent, to 5727.14.
Within the index 28 stocks rose, 14 fell and eight were unchanged. Turnover was $102 million.
F&P Healthcare led the benchmark index higher, up 2.1 percent to $7.35. Tower climbed 1.6 percent to $1.92. Ryman Healthcare gained 1.2 percent to $7.37. Sky Network Television advanced 0.6 percent to $5.11. Spark New Zealand increased 1.3 percent to $3.09.
"We seem to be seeing some bargain hunting in the stocks that have been sold off," said James Smalley, director at Hamilton Hindin Greene.
In a speech today, Reserve Bank governor Graeme Wheeler reiterated he is likely to cut interest rates again, although he is also conscious of the risk that low borrowing costs inflame the housing market and wants to retain some capacity to ease policy in the event of a global downturn.
That pushed dividend paying equities higher.
Precinct Properties New Zealand advanced 1.7 percent to $1.18. Property For Industry rose 0.7 percent to $1.49. MightyRiverPower climbed 0.8 percent to $2.49. Stride Property gained 0.3 percent to $1.975.
"The market has taken him as more hawkish," said Smalley.
Ebos rose 1.2 percent to a fresh record close of $13.30.
Fonterra Shareholders' Fund fell 0.6 percent to $5.48.
Outside the benchmark index, Seeka Kiwifruit Industries fell 1.5 percent to $3.35.
Pushpay Holdings jumped 13 percent to $8.28 after reporting committed sales more than doubled in the first half as the number of customers exceeded expectations.